Dow Jones BRIC 50 Index

What Is the Dow Jones BRIC 50 Index?

The Dow Jones BRIC 50 Index is a market capitalization-weighted stock index containing 50 of the most liquid and largest companies operating in Brazil, Russia, India, and China (BRIC nations). The index uses the Dow Jones Global Indexes as its stock universe for the four nations.

The BRIC index has 879 constituents, and the index covers approximately 85% of the market capitalization in each country. Fifteen positions are targeted for each country Brazil, Russia, and China, while Russia's representation is targeted for five positions.

Key Takeaways:

  • The Dow Jones BRIC 50 Index is a market capitalization-weighted stock index composed of 50 of the most liquid and largest companies operating in the BRIC nations.
  • BRIC stands for the emerging markets of Brazil, Russia, India, and China.
  • Selection for the index is based on a ranking system that looks equally at free-float market capitalization and average daily volume.
  • No single stock can make up more than 10% of the BRIC 50 Index.
  • BRIC investing is a trendy strategy as these nations represent large, developing economies that are becoming increasingly involved in the global economy.

Understanding the Dow Jones BRIC 50 Index

The index's selection is based on a ranking system that looks equally at free-float market capitalization and average daily volume. The top 10 ranked stocks in each subindex are selected along with a customized selection of five more between the rankings of 11 and 20. (These numbers are prorated for Russia.)

The index is reconstituted annually, and weightings are adjusted quarterly.

BRIC investing is a trendy strategy, as these nations represent large, developing economies that are increasingly involved in the global economy. China's representation is sought only in the offshore market, where H-shares and American depositary receipts (ADRs) are available on different stock exchanges.

Dow Jones BRIC 50 Index Data

The BRIC 50 index contains 50 constituent stocks, weighted around one-third to the technology sector, 20% to financials, and 14% each to oil & gas and consumer services. In terms of the four BRIC countries' representation, 15 of the 50 holdings (57.2% of the total market cap) belong to Chinese companies, 14 to India (22.5% of the market cap); 16 to Brazil (10.8%); and 5 to Russia (9.5%).

As of the end of 2021, the top 10 holdings of the Index (which make up 55.5% of the market cap) were as follows.

BRIC 50 Top 10 Stocks
 Company  Sector  Country
Tencent Tech China
AliBaba Tech China
Meituan Dienping Consumer China
Reliance Industries Oil & Gas India
Infosys Tech India
JD.com Consumer China
China Construction Bank Financial China
Gazprom Oil & Gas Russia
NIO Consumer China
Vale Materials Brazil
BRIC 50 Top 10 Stocks

No single stock can make up more than 10% of the BRIC 50 Index.

Dow Jones BRIC 50 Subindexes

The subindexes are the Dow Jones BRIC Brazil 15 Index, the Dow Jones BRIC China 15 Index, the Dow Jones BRIC China 15 Capped Index, the Dow Jones BRIC India 15 Index, the Dow Jones BRIC India 15 Capped Index, and the Dow Jones BRIC Russia 5 Index.

The following is a breakdown of these subindexes:

  • The Dow Jones BRIC Brazil 15 Index represents 15 of Brazil’s largest and most liquid companies traded on the Bovespa stock exchange.
  • The Dow Jones BRIC China 15 Index represents 15 of China’s largest and most liquid companies whose principal operations are in mainland China but trade on the exchanges of Hong Kong and the United States.
  • The Dow Jones BRIC China 15 Capped Index is a capped version of the Dow Jones BRIC China 15 Index where company weights are capped at 19%.
  • The Dow Jones BRIC India 15 Index represents 15 of India’s largest and most liquid companies traded on the Bombay Stock Exchange.
  • The Dow Jones BRIC India 15 Capped Index is a capped version of the Dow Jones BRIC India 15 Index where company weights are capped at 19%.
  • The Dow Jones BRIC Russia 5 Index represents five of Russia’s largest and most liquid companies traded on the MICEX stock exchange.

Is Investing in the Bric 50 Index Risky?

Since BRIC countries are categorized as emerging markets economies, they do tend to be riskier with more volatile stock markets than developed economies.

What Other BRIC Indexes Are There?

In addition to the Dow Jones BRIC 50, FTSE Russell also manages a BRIC 50 Index using a similar methodology. Dow Jones also offers a BRIC 40 index that includes the 40 leading BRIC stocks. The MSCI BRIC Index is another, broader BRIC index, including 920 holdings.

How Can I Invest in a BRIC Index?

In the U.S., there is currently only the iShares MSCI BRIC ETF (BKF), an exchange traded fund that tracks the MSCI BRIC Index.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. MSCI BRIC Index, "MSCI BRIC Index (USD)." Accessed Dec. 28, 2021.

  2. S&P Dow Jones Indices. "Dow Jones BRIC 50." Accessed Dec. 28, 2021.

  3. S&P Dow Jones Indices. "BRIC 50 Fact Sheet." Accessed Dec. 28, 2021.

  4. FTSE Russell. "BRIC 50 Index Fact Sheet." Accessed Dec. 28, 2021.

  5. MSCI. "MSCI BRIC Index Fact Sheet." Accessed Dec. 28, 2021.

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description